Financial Insights

The Latest Details on FedEx Ground Bonuses and Why You May Read Conflicting Info

Here’s why you’re hearing more than one thing on bonuses: FedEx Ground historically awarded bonuses to contractors. However, FedEx Ground is in the process of phasing out bonuses and so some contractors have them and some do not. Understanding what bonuses used to do, why FedEx Ground is phasing them out, and what comes next is a critical piece of the puzzle as you model future finances.

The Need-to-Know Updates To Your FedEx Ground ISP Contracts

You are charging FedEx for your services. You will negotiate each of the following charges with FedEx. All of these charges combined account for money flowing into your business. It’s critical you understand how and when those charges occur. And how you can increase your cash flow! Following is a quick overview of the charges you will negotiate as part of your Independent Service Provider (ISP) contract.

Financing a FedEx Route: Don’t Be Afraid of Debt to Get Started

Don’t be afraid of using debt/leverage to buy these businesses. These FedEx routes for sale can sustain a higher debt load than what some other businesses allow. Typically, your finance source will require a down payment of 20% or more. With a 20% down payment you lever your business 4:1. You have 1 part down payment and 4 parts debt.

Understand FedEx Route Financials: Profit Margins, Financing Options, and More!

Here are the financial highlights from our industry overviews this year. We focused on content this past year on giving you as much insider information as possible—especially information on the financials of buying a FedEx route. We resurface ideas such as: look for P&D businesses with profit margins between 15 and 20% of revenue; potential buyers often turn to bank financing to purchase FedEx routes; one strategy for acquiring sufficient down payment funds is to reduce the loan amount via seller financing; and have a deep understanding of the charges you will negotiate in your ISP contract.